Guest Post: Shouldn’t Business & Life Skills Complement Each Other? by Julie Morris

post-it notes on a planning calendar

Photo by Daria Nepriakhina on Unsplash

Americans spend one-third of their lives working – often more for entrepreneurs – and the distinction between our work and personal lives becomes more difficult to separate.

You may not realize what you learn as a business owner may also apply to other aspects of your life, whether it’s your relationship with your partner, or negotiating with a home contractor. And applying interpersonal skills to your business is also appropriate.

Getting things done

If you have fallen victim to the never-ending “to-do list” at home, consider how you tackle your essential tasks and projects as a business owner. You might track a project’s progress using project management software. You give yourself deadlines for reaching certain steps or milestones.

While investing in professional time management software may not be realistic, there is no shortage of time management apps that can replace the seemingly endless sticky notes or the list stuck to your refrigerator door (probably with a promotional magnet that is supposed to remind you to get your teeth cleaned). However, you can go old school and use the A-B-C method to set priorities and decide which tasks to do first and in which order.

Another thing business owners do is have a sense for when they need to call in reinforcements, whether from employees, associates, contractors, or even technology. For example, as a business owner, you can ask your assistant to draft a standard “thank you” email that you can easily personalize as necessary and send out as needed. You can recreate this at home by ordering personalized, pre-printed cards that can easily be adapted into customized thank-you notes, birthday greetings, or expressions of sympathy.

In all cases, remember that just because you know how to do something yourself, doesn’t mean you have to, or even that you should. As a business owner, if you decide to structure your business as a limited liability company or LLC, you could do all of the work yourself by researching the steps of filing in Illinois online and taking time from your already-stacked day to fill out the required forms and file the paperwork.

You could also spend money and hire an attorney to do it. Better yet, take advantage of an online formation service for starting a business in Illinois, easily saving your company’s precious resources as well as your irreplaceable time. In the space of a couple of hours you’ll be ready to hang up your shingle and accept your first customer!

Getting things done, only better

Successful business owners have a vision for their company but still embark on tried-and-true paths in their business operations. For example, business plans have been used for years, giving business owners a roadmap and helping them validate their ideas to potential investors. Customer Relationship Management (CRM) programs help them manage their sales funnels and manage customer satisfaction and retention. Not reinventing the wheel saves time, money, and reduces stress and anxiety.

BUT … business owners also aren’t afraid to innovate and problem-solve when necessary. It may involve taking risks, but risks are a necessary part of business and in fact, many would consider risk as being synonymous with entrepreneurship.

However, developing a healthy sense of risk tolerance along with the need to develop discipline and standards as the business evolves is what makes some business owners “business builders” rather than serial entrepreneurs, as noted by Chris McGoff.

How does this apply to other parts of your life? Well, sometimes it pays to take the path of least resistance, but that shouldn’t erase the desire to make positive changes, to dare to dream, and to try new things – or simply improve on existing ones.

Take communication, for example. Everyone does it, whether we want to or not. But for some people, it comes easier than others, and they may not see a reason for putting additional effort into their communication capabilities, or “soft skills.”

Technical and practical expertise is often emphasized and lauded, while “soft skills” are considered “nice to have.” Well, honing your soft skills can help you land jobs, contracts, get a better price, and even save relationships. That sounds less like a “nice to have” and more like a “must-have.”

Establishing your brand

Who are you? As a business . . . as a person. What is your brand? Creating a brand that matches with your values and your company’s values is easier than to pretend to be something you are not. Spending some time considering your brand and your values is important.

Have some fun with this. Use a visual logo design maker to create and stimulate your thoughts. What do you want your logo to say about you? What can you visually bring into the world to emphasize your emerging brand and values?

Also, your website and your marketing need to let the customer know how you can help them and what problems you can solve. Hiring What A Great Website to ask you the right questions, help you define your brand, and create a website and all marketing materials that properly align your brand with your values and business model can be immensely productive and necessary to your continued growth.

Explore the portfolio of What a Great Website’s clients and see how hiring someone to create or update your website can establish your brand and better serve your customers.

It’s all a blur of humanity

Improving yourself crosses both personal and business lines, which is the point. What you do in one affects the other. Your business is filled with emotions because it’s filled with humans. Once you understand that, you’ll realize the importance of adding tools to your toolbox to help you deal with that humanity.

Julie Morris is a life and career coach.  Find her at http://juliemorris.org.

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 5 reasons why you should add visuals to your marketing.

woman pointing to the 5th of 5 yellow stars to signify successful marketing

We know that social media posts with visuals outperform text-only posts. 

But visuals enhance other forms of marketing as well. As visual creatures, we enjoy reading or skimming material which contains graphics and images.

In fact, according to this post in Polls Everywhere, visuals increase the desire to read content by 80%. With a reach like that, can you afford NOT to use visuals in your marketing? Hardly.

Get Creative.

Smart marketers employ a variety of different types of visuals to spice up content — photos, graphics, banners, Infographics, charts, videos, clips or gifs.

The type of product or service you’re selling will generally inform the type of visuals you use. But as long as it helps clarify your copy and grab the reader’s eye, there’s no reason why you can’t get creative and try a type of visual you haven’t used before. Play with colors and shading. Do something none of your competitors are doing.

Head over to Content Marketing Institute to see some excellent examples of companies that have nailed visual content.

Since we also like material laid out in an easy-to-scroll format, here are 5 reasons why you should add visuals to your marketing.

  1. Readability.
    Blocks of text are not only boring, they’re intimidating. Not the reaction you’re looking for when you publish a new article or blog post or launch a new website.Blocks of text are not only boring, they’re intimidating. Not the reaction you’re looking for when you publish a new article or blog post or launch a new website. Your content might be groundbreaking, but that’s irrelevant if people don’t read what you’ve written. Adding visuals breaks up copy making it more compelling to read and easier to scroll.“Every aspect of your website must account for each user’s wants and needs at a given moment in time.” Alan Smith, Usability Geek
  2. Reach.
    Some people really don’t like to read. And with the success of YouTube, they don’t have to. They prefer to learn via video. Others respond better to visuals than to text.What to do? “People are 80% more likely to read content if it’s paired with colorful visuals.” Tara Johnson, “How Visual Marketing Works”.So if you want to reach the broadest audience you can, make sure you incorporate visuals (and videos where appropriate) into your copy.
  3. Retention.
    According to this post titled “7 tips for using visual content marketing,” from Social Media Today, people remember visual information 6x better than the information they have read or heard. Since you’ve taken the time to write your content, why not make it as easy as possible for people to absorb it.
  4. Impact.
    Ideally, you want your copy to have an impact on your readers. You want them to follow you, refer you, quote you, or  hire you. Or share how terrific you are on social media.  Adding visuals to your content helps make that happen.In this article from eLearning Industry titled “Visual Learning: 6 Reasons Why Visuals Are The Most Powerful Aspect of eLearning,”  author Dana Jandhyala states ““Powerful images and visual metaphors create strong impressions and lasting memories in learners.”
  5. Interest.
    Illustrations or photos support your content and enhance copy so it’s more interesting.  From PR Daily, “visual content gets viewed 94% times more than content without any visuals” according to a 2018 Social Media Examiner report. May 24, 2018

    Ready to mix up your marketing?

If your marketing efforts haven’t resulted in sufficient new business, try putting some of these tips into play.  And start to pay attention to how and what YOU read (and react to). Odds are that visually void content is not something you’re really reading either.

Learn more about how to make your website compelling.

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Smart small businesses come up with solutions.

graphic image of the word create

Many thanks to Lum3n for use of this Pexels image.

A recent headline in the Wall Street Journal jumped out: Target Posts Record Quarter.

Really? Month 6 of a pandemic. Life is anything but normal. Shops still closed. Restaurants going out of business. And Target can’t get out of their own way.

What’s Target doing that others aren’t?  It’s simple, really. They’ve listened to their target market. And provided solutions.

Their customers want to be safe. They want to shop from home and pick up purchases without getting out of their cars. Or get deliveries. They also want convenience and to save time.

Smart small businesses come up with solutions.

Target ramped up their online presence and made it easy to shop their website. Don’t want to go into stores to browse back-to-school items? Their robust website has everything your kids need online. So you can easily shop from home, then pick up at a dedicated pickup location or get your items delivered.

No, it’s not the same back-to-school experience we knew. No browsing the aisles so your kiddos can find the right color glittery folders. No picking that perfect pencil case and backpack. No trying on new clothes.

But this is a new school year unlike any we’ve seen before. And these are the realities. The retailers who GET it……like Target….are seeing sales soar. And they’re not alone.

What can you, a small business owner or an entrepreneur, take away from Target’s example?

Here are five things you can do right now:

  1. Pay attention to what keeps your customers up at night. Then find a solution that you can offer them.
  2. Let them know. Share those solutions/new services on your website, in emails and newsletters and on social media. And ask people to retweet, reshare and tell their friends.
  3. Reach out. As soon as you’re aware that your clients are having trouble, let them know you’re there to help.
  4. Make it easy for them to contact you. Everyone has different ways they like to connect. Give them options — phone, email, text, Facebook Messenger.
  5. Research new products or services you might provide. Can you offer free delivery? Extended payment terms? (Be careful about that one). You might discover some new income streams, and that would be a win-win for you and your customers.

These are challenging times but that doesn’t mean your business can’t survive…..or even thrive. These are conditions that smart entrepreneurs look for.

What opportunities for growth do you see?

Now is the time to figure out exactly what you can do to move forward. Need more inspiration?

Read about some companies that are household names that successfully launched during wretched economic times:  13 Massive Companies That Started During a Recession by Kelly Bertog. You might be surprised. You’ll probably be inspired.

And if you end up coming up with some ideas, let us know. We love small business success stories!

Read some of our other articles to help you market smarter:

Small Business Marketing in the Throes of a Pandemic

Why Marketing Matters More Than Ever

Marketing Morsels: How Clear is Your Brand Voice?

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Supporting Our Small Business Colleagues & Friends

Every once in a while, I like to look back to what we were doing a year ago.

In July 2019, life was radically different. We were busily blogging about branding. We also  roamed freely in our cities and networked face-to-face. Summer was filled with beach time,  boat rides, biking and concerts and festivals. A typical wonderful Chicago summer.

A lot has happened in this year. A lot of really difficult days as small business owners struggle  to survive…..or just to not have to shut down.

More than ever, we need to support one another. Our business community is stronger when  it’s healthy. So we’ve come up with something called Small Business Shoutouts. We want to  help our small business colleagues, clients and friends who are facing huge challenges. We  want to celebrate the grit, hard work and determination it takes to start a business and stick  with it through difficult times. Like now.

The goal of Small Business Shoutouts is to spread the word. Maybe you don’t know these  businesses or organizations. Maybe they offer something you’d love or a friend or colleague  would love. We’d love if you could share them with friends. Because we think that’s what a  healthy small business community does.

Here’s who we’re shouting out this month:

Shoutout #1 goes to Free Spirit Yacht Cruises, a family-owned private luxury yacht charter  Owners Angela and Joe Donofrio operate two of the most inviting private yachts on Lake  Michigan. Many of their corporate and private clients come back year after year to entertain  and celebrate happy occasions. But this year has been rough with almost three months lost  due to COVID-19. When your season is only six months long, it’s devastating to lose half of it.

free spirit private yachtA private yacht offers excellent entertaining opportunities despite the virus. And it definitely is  a spirit booster. You’re outside in fresh air and the yachts are large enough for easy social  distancing. You can still enjoy great food and drinks. The yachts are spotless and every  precaution is taken to keep you and your guests safe. So if you’re looking for a way to  celebrate summer, a private yacht charter might be just what you need. The season doesn’t  end till early October. Just sayin……

Full disclosure: I worked with Free Spirit on their marketing and PR from the time they first  bought the company ten years ago until 2018. We also designed several website iterations  (although not the current one).

Shoutout #2  is for 360 Chicago, the observation deck at the top of 875 N. Michigan Ave  (formerly called the John Hancock Building).
360 CHICAGO
Another near casualty of the virus, it just  reopened on July 1st and offers one of our town’s most amazing views. Whether you’re up for Tilt, billed as Chicago’s highest thrill ride, or just want to experience the oohs and ahs of our  city 94 floors below, it’s a treat for the whole family. They’ve taken all sorts of COVID-related  safety precautions? so you can feel perfectly comfortable visiting.  Full disclosure: Iris does their  graphic design branding work.

Shoutout #3 is not a small business but an organization that advocates for small businesses  in Illinois. The SBAC (Small Business Advocacy Council) is a non-partisan, member-driven  organization that promotes the success of small business through political advocacy, support  services and educational programs.

the sbac website home pageIf your small business has benefited from Illinois’s reduced LLC filing fees or from bills that make it  easier for small businesses to compete with large companies in the same arena, you can thank the  SBAC. Aside from advocacy, it offers a wealth of resources including educational programs and  networking opportunities to all its members. We are active members.

We are also active in the SBAC Women In Business Group. And Iris is on the board of SBAC  Empower, an SBAC affiliate which promotes entrepreneurship and small business development in  economically-challenged communities with education and mentorship. Full disclosure: we did the  SBAC Empower website.

If you know of a Chicago area small business that could use a Shoutout, leave a comment and tell  us why. In the meantime, stay safe and enjoy the summer we’ve been dealt. It beats Chicago winter,  right?

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 20 Ways to Jumpstart 2020

A new decade dawning. Does it feel newer than a regular old middle-of-the-decade new year? Probably not. But why not use it for what it is – a beginning — the start of a calendar year. And as good a time as any to think about how you can jumpstart your business.

Based on our combined 50+ years in business, we offer the following 20 ideas for making 2020 your best year yet:

  1. Focus on focusing. Don’t try and accomplish more than you can reasonably accomplish. Better to do a few things really well than a bunch of things half-assed.
  2. If you make a mistake, move on. If you’re lucky enough to be in business long enough, you’ll make lots. That’s how we learn!
  3. Surround yourself with smart people.
  4. LEARN from the smart people around you.
  5. Hire people with the skills you don’t have. So you can focus on what you do best.
  6. Learn to network. If you already know how, finesse your skills.
  7. Master a new skill. Or a few. Podcasting. Speaking gigs. Seminars. Blogging. All meant to increase your visibility and put you in front of new audiences (and potential clients).
  8. Ask for help. No one knows everything there is to know about an industry. Learn from people who know what you don’t.
  9. Think about mentoring someone. You will get back at least as much as you give.
  10. Take vacations. You need a business break now and then. Working a 7-day week will not make your business better. It WILL make you burn out faster.
  11. Volunteer. Get out of your own head and share your time to help others — local community organizations, homeless shelters, rescue organizations, foodbanks….the list is endless.
  12. Read. A lot. Not just business books but all kinds of books. The more you read, the better you write. And the easier it is to solve problems.
  13. Exercise. A little every day if you can. Not necessarily lifting weights or running. Walking works too. Anything that gets you up and moving and not thinking about work problems.
  14. Get more sleep. We’re not going to quote all the studies but you KNOW that you operate better on a decent night’s sleep.
  15. Take some risks. If you want to grow, you need to step out of that safe circle. There’d be no inventions if the inventors hadn’t decided to find a better way.
  16. Be pro-active. The last decade has seen far too many businesses suffer because new technology made their products or services obsolete (thanks, Amazon). Don’t ever get too comfortable.
  17. Treat your employees like the critical business assets they are. And if they’re not, let them go.
  18. If you don’t have a solid email program, stop wasting your database and make this the year you nurture your soft connections.
  19. If you’ve avoided social media (yep, we’ve seen companies that are still waiting to see if it works!), time to jump in. Be smart. Learn one platform well and then add others. Or hire someone who knows how to do it.
  20.  If your budget allows, bring in experts to do the things you can’t do, don’t want to do or need help with.

If you only implement a few of these 20 ideas, you’re bound to see some success.

And if you need help with anything web, digital or marketing-related, give us a call. We’re looking to grow your business too.

 

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Why your presentations suck and what to do about that.

Ever wonder how effective your PowerPoint presentations are? What if you discover that the format you’ve been using is all wrong?

Inc Magazine recently published an intriguing article by Geoffrey James claiming that PowerPoint is “worse than useless”.

Note: the link above is not broken. And it’s a good article.

It brings to mind a presentation I received several years ago when I was lining up speakers for some seminars I was leading. I didn’t know what to do when a speaker submitted a 50-page PowerPoint deck for her 30-minute slot. My eyes glazed over as I scanned through it. Most of it text and bullet points, not images.

I could see heads nodding just thinking about it. We had the speaker condense it as much as we could, but it was not one of the highlights of the seminar.

Rather, the talk that received the best rating was one where the wifi went out a few minutes into it (every speaker’s nightmare). This speaker used extensive knowledge of his topic and a warm, engaging personality to capture everyone’s attention.

So how do you ensure that your presentation is well received?

I present bullet points 2 and 9 in this smart article from Presentation Prep titled “10 Most Common Presentation Mistakes”.  Number 5 is particularly interesting since it’s the first thing a speaker should know about their audience.

If you’ve been using slides in your presentations and notice heads nodding, what can you do?

Think about the best presentations you’ve attended. They’re probably the ones you remember. What stands out in your mind? Pretty slides? Probably not.

I’m not suggesting that you never use slides. In some cases….like a talk on photography….. they can be used very effectively. But I am suggesting that you use them sparingly — as support for what you’re saying rather than something to read from. Blah blah blah……

The best presentations are those where the speaker knows how to engage her audience. The ones you leave thinking “that was terrific” or “I want to hear more from this person”. Followed by feeling you need to:

  • Visit their website
  • Follow them on social media
  • Set up a coffee date.

In other words, the best presentations are teasers. They leave you wanting more. They’re new business drivers — the best kind of marketing tools you can find.

Next time you’re preparing for a presentation, try these 7 tips:

  1. Focus on how you can engage your audience. This might depend on who you’re speaking to. Men respond differently than women. Professions and type of industry also impact your presentation style. If you’re speaking to a group of brain surgeons, your tone and demeanor will be much different than a talk to event planners or yoga instructors.
  2. See how quickly you can get their attention. Think about what your audience needs. What can you give them that will help them work better, smarter, faster?Some speakers start with a question or two asking exactly that. Statements like “did you know?” or “have you ever tried….?” or “you know how you feel when…..?” come to mind. Why? Because they speak to problems you’ve had or entice you with a better way to solve something that’s always driven you a bit crazy.
  3. Ask your audience to take notes. You don’t just want them to listen. You want them to participate. With paper and pen, not digitally. The brain/hand connection has been well documented. Studies suggest that “Writing by hand strengthens the learning process”.
  4. Be authentic and likeable. We’re generally more engaged when we feel that we like the person we’re listening to.
  5.  Use humor (assuming the topic isn’t a very serious one). Laughing or smiling warms up a room and helps people relax. When we’re relaxed, we’re more receptive to listening – even if we don’t necessarily agree with the person speaking.
  6. Use handouts.  Preferably have them on the seats or tables at the start of your talk. That way, the audience can get an idea of what you’re going to be talking about. And they can use the handout to take notes.You might also include a “how’d I do?” form for people to rate your presentation. That lets them know you give a damn and want them to come away having learned something new or at least thought provoking.
  7. Close with a thank you. And a call-to-action for next steps.
    For example:
  • Feel free to call, text, email me with any questions you may have
  •  Follow me on Facebook, Twitter, LinkedIn, Instagram
  • Sign up for my newsletter, podcast, etc.

Try these tips as you prepare for your next presentation and we’re betting you’ll have an engaged and smiling audience.

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Are you wasting your time sending emails?

You’ve decided it’s time to do an email campaign. So you buy a list, craft what you believe to be a good email letter and send it out. But when you look at the stats, you’re less than thrilled. Minimal opens. A lousy click through rate. ZERO conversions. What happened?

Let’s look at some possibilities:

  1. The list you purchased is ineffective.
  2. Your subject line is….yawn…..boring. Delete. Delete. Delete.
  3. You buried the lead. Get to the point before the reader drags your message to the trash.
  4. The tone of your letter is too formal.
  5. The tone of your letter is too casual.
  6. You missed some typos.
  7. There’s no call to action.

Any of these seem relevant? If so, here’s what you can do so your next email campaign isn’t a bust.

  • Save your moneyAccording to Hubspot, good email lists aren’t for sale. They suggest creating your own email list (we heartily agree) and this article gives you some good tips on how to do that.
  • Come up with subject lines that beg to be opened.  Pay attention to the emails you open. What are the subject lines that you simply must click on? That’s what you’re aiming for.

If you’re not a good writer, hire a copywriter. Your subject line should be enticing. It should either speak directly to your target market’s pain point or be clever enough that a prospect is curious to read more.   

For example:
Are cash flow worries keeping you up at night?
Do you know why your competitors are stealing away your clients?
3 things potential customers want that your company isn’t providing

  • Don’t waste a reader’s time. Everyone’s busy. Get to the point quickly. And make it easy to read by writing short paragraphs and breaking content up with subheads. Think of what you can do so the recipient can easily scan the entire letter. That increases the chances of being read.
  • Lose the formal language and infuse some warmth into your copy. The beauty of emails is that they are efficient direct marketing tools. You are speaking one-to-one with the reader. Actually, “you’re speaking one-to-one” is appropriate. It’s the perfect opportunity to write as though you were speaking face-to-face. 
  • Don’t be overly casual. Here’s an exception to the bullet above.  If the email is going to a recipient in a market where casual language is inappropriate (i.e. the FBI or legal entities), your copy should be straightforward. But not stuffy. You can still be human in your writing.
  • Make sure there are no typos. Typos are sloppy. They make an immediate bad impression. That’s why smart job seekers have multiple people review their resumes. It’s not just spelling errors, or the wrong word (e.g., “their / they’re / there”) but punctuation mistakes as well.

We make sure that three sets of eyes proof copy before anything goes out or gets published. Even then, we’ve had a few instances where we missed something. Believe me, you’ll be more careful the next time.

  • Call-to-action. If you’ve done a good job and your email gets read, be sure to lead the recipient to the next step.  Add a call-to-action so she knows what you want her to do. Or a “this is what we will do next”.

For example:

Let me know which of these dates/times work best for you to talk.
Which of our 3 free whitepapers would you like me to send you?
I’ll give you a call next week to set up a meeting.

I’ll add a few more tips:

  • Make sure your email speaks to the needs/wants/hopes of the recipient. That requires truly understanding their pain point.
  • Include backup. Use testimonials from happy clients to support your claims about how you can help this prospect.
  • Use color, white space and/or a graphic to make emails more visually appealing. Big chunks of copy are intimidating which means they probably won’t get read.

Who said email campaigns were easy?

Email campaigns can be challenging to pull off.  A 2018 Mailchimp survey showed the average email open rate was less than 21%. This was across the board for all industries they looked at.

That’s a whole lot of wasted effort as far as we’re concerned.  Our average open rate is 32%. That’s well above the average but we’re still aiming for higher.

Call us if your emails aren’t getting opened. We’d love to help you!  

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4 Top Tips to Better Content

hands typing on a keyboard

Today’s small business owner faces a big challenge. Digital noise surrounds us online — offers, freebies, surveys, endless articles. Getting your content read is more and more difficult. What can you do to make sure people see and share your content?

Here are 4 easy tips to make that happen:

  1. Focus on the benefit. How does your company help your target market? Think about the problem your products or services solve. Then tell visitors to your site exactly how that works. Don’t assume they’ll “figure it out” by reading your copy all the way through. That’s a crap shoot. In a noisy online world, you need to cut to the chase and tell people exactly what you want them to know.
  2. Identify your target market. Far too often we see business owners with wildly disparate target markets. Don’t try to be everything to everyone. The tighter you can define your market, the more you become a specialist. If you break your arm, would you want your internist to operate on you? Hell no! The same goes for selling your products and/or services. Focus on a particular segment of the market and target your copy to reach that segment in language they can relate to.
  3. Make it easy (or better yet, fun) for visitors to absorb your content. Is your product one that can be marketed with humor? Create a short clever video to get your point across. Or use images that convey humor. Cute fuzzy animals always seem to engage people. Cartoons haven’t been overused yet so that’s another option. If you offer services for a serious issue, like one that’s health-related, present content that’s easy to understand. Charts, infographics, copy with clear steps or bullet points and explainer videos are all good ways to share important or sensitive information.
  4. Make it easy for visitors to share your content. If you’ve succeeded in bullet point 3, this should be a piece of cake. People share what they think others in their world will like — content that’s interesting, amusing, informative, exciting or unusual. But be sure to tell your visitors to share your content. Share icons are important but saying “be sure to share this” or “don’t forget to share this with your friends” is just smart!

Your website may rank high in search, but if visitors aren’t engaged once they land there, you’ve got a lousy site. Bounce. Bounce. Bounce.

Need help with your content? Work with us.

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when startups fail

Jumping on the startup bandwagon is not for everyone. It’s certainly not for the risk-averse. Because starting a business is a bad idea if you’re not able to accept failure.

It’s also not for someone who can’t develop or follow a plan. Startups need structure. Processes and procedures don’t just happen. They need to be created and implemented.

According to Small Business Trends, “A bit more than 50 percent of small businesses fail in the first four years”.”

Actually, we thought the number was higher. Maybe because we’ve been doing this long enough that we’ve seen more than a few startups fail.

Sometimes you know upfront.

You get an inkling that something’s off. Often it starts with a whirlwind of excitement and big plans. Really big over-the-top plans that seem wildly optimistic.

Now we have nothing against excitement and having a positive attitude is hugely important. But so are plans – especially when you’re starting a new business. And if the plans aren’t based in reality, you’re looking for trouble.

That was the scenario a few years ago when we were hired to build a website for a new music and light dining venue. The concept looked good on paper. A sophisticated, casual night spot in an area that could easily support this kind of entertainment. The client was over-the-moon-excited. She was commissioning pricey artwork and spending freely on interior design. The excitement was contagious and we were all looking forward to the opening.

Then reality kicked in. And we realized that under all the glam and excitement was…..well, nothing. No business plan. No marketing plan. No roadmap on how this business was going to run. They couldn’t find a decent chef because they hadn’t allocated enough money for one — unacceptable in an area where people expect top quality food.

A few months into the launch of this project and the red flags we’d noticed were looking bigger and bigger. One thing after another went wrong until we realized there was no way this venture was going to fly.

In hopes of helping save other startups, here is what went wrong for our client and the six warning signs you need to heed if you’re launching a new business:

Six Red Flags

  1. Ignoring the competition
    Our music venue client disregarded a successful venue down the street because it was really a restaurant. But they did have music one night a week.  Fast forward a few months, the competitor’s weekly music night was drawing crowds. Because they had terrific food and longstanding customers. Never underestimate the value of customer loyalty. And always understand the competition.
  2.  Failing to prioritize
    Rather than allocating marketing dollars to communication tools to let people know they were opening and build some buzz, the venue owner spent money on all sorts of pricey premiums and custom artwork. Social media was minimal. PR was non-existent. Huge oversight! We still have some of those premiums — they lasted far longer than the club.
  3. Skimping on the essentials
    Serving food? Better make damn sure it’s good. Saving money by hiring inexperienced (or poor) chefs will be your demise. That’s what happened to our client.
  4. Not listening to the experts you’ve hired
    Savvy entrepreneurs know they can’t do it all. That’s why they hire professionals to handle what they can’t. If you’re paying someone to help you build your business, listen to their advice. Otherwise, save the money and do it yourself. It’ll be less of a loss when you shut down.
  5. Not listening to your customers
    If one table sends back food with a complaint that it’s cold, that’s easily fixable. If more than one table has the same complaint, pay attention. You’ve got a problem in the kitchen. Ignore the problems and you’re never going to make it.
  6. Falling in love with your product or service
    The A#1 mistake our client made was falling blindly in love with her venture. She was so convinced that this was going to be a success that she did little due diligence. And once things started to fail, she ignored the warning signs.

As entrepreneurs, we’re passionate about entrepreneurship. We like to see others succeed. And we love being involved in success stories. Building a website for a company that didn’t even last a year made us feel pretty bad. Especially since we loved the website!

Because we give a damn, there’ve been times we’ve suggested that a potential client pull back instead of moving forward with a new website. Rather than see a startup fail, we’ve suggested that they go back to the planning table and rethink what they’re trying to do. Once all the pieces are in place, we’re happy to build their website.

Lest we discourage anyone who’s eager to start a business, here’s an article from Inc magazine on 15 reason why it’s a good idea to start a business.

Note: the link above is crossed out but it still takes you to the article.

If you’ve got a clear plan and aren’t afraid of making mistakes (they’re part of the learning process), go for it.

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